Financial institutions suffer extreme financial losses each from as a result of fraudulent behavior. Oftentimes, a significant portion of the fraud includes a transfer of money to or from an account at the financial institution. For example, a customer may attempt to cash and/or deposit a fraudulent negotiable instrument with a teller at the financial institution, at an automated teller machine, or through a website that is accessible through the Internet. Some customers are aware that the transfer of money is fraudulent and actively participate in defrauding the financial institution. Other customers fall victim to organized fraud schemes that are designed to harm both the customer and the financial institution by performing an unauthorized money transfers to perpetrators.
The financial institution performs a lengthy verification process it receives a request to transfer money. The verification process often lasts for several days when negotiable instrument such as a check is presented for payment. In many situations, the financial institution (e.g., bank) transfers the money before it completes the verification process. Therefore, there exists a need for a fraud detection system and/or method that identifies and reacts to fraudulent transactions in a near real time basis and with a high accuracy.